The ResMed Inc (ASX: RMD) share price will be one to watch this morning.
This follows the release of the sleep treatment focused medical device company's full year results.
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ResMed share price on watch after beating expectations
- Revenue increased 8% to US$3.2 billion
- Non-GAAP operating profit up 12% to US$993.8 million
- Non-GAAP net income rose 13% to US$780.6 million
- Earnings per share increased 12% to US$5.33
What happened in FY21 for ResMed?
ResMed was a positive performer in the fourth quarter, outperforming the market's expectations for both revenue and earnings per share. This could bode well for the ResMed share price today.
Pleasingly, it was the same story for the whole of FY 2021, with ResMed delivering solid revenue and profit growth despite cycling a period boosted by COVID-19 ventilator sales.
The company notes that it derived incremental respiratory care revenue from COVID-19 related demand of approximately US$20 million in the fourth quarter. This compares to US$125 million in the prior corresponding period.
ResMed was able to offset this with strong sales from its core business thanks to a recovery in its sleep apnoea and COPD patient flow. This was boosted by a major quality issue from one of its leading competitors.
This led to full year Global Device sales rising 7% to US$1,610 million, Mask sales increasing 11% to US$1,213.2 million, and Software as a Service sales growing 5% to US$373.6 million. Growth was delivered both in the United States market and internationally.
What did management say?
ResMed's CEO, Mick Farrell, was pleased with the company's strong finish to the year.
He commented: "Our fourth quarter and full-year fiscal year 2021 results continue to demonstrate the strength and resiliency of our business. During the quarter, we saw the ongoing recovery of core sleep apnea and COPD patient flow across our business, as healthcare systems continue to adopt new models of patient care. We faced some headwinds this quarter, as we annualized the $125 million in COVID-related ventilator sales from this period in 2020, and we saw some tailwinds from a competitor's major quality issue that was announced during the quarter.
"At this time of incredible demand for ResMed products, we are doing everything we can to increase our manufacturing of sleep and respiratory care devices. Our global team is supporting patients, providers, and physicians with our priority to get products directly into the hands of patients who need therapy most."
What's next for ResMed?
While no guidance was given for the year ahead, management spoke positively about its prospects in FY 2022.
Mr Farrell explained: "Looking ahead, we are confident in our ability to grow steadily through our fiscal year 2022 and to deliver for all our stakeholders. We're driving accelerated adoption of digital health solutions in sleep apnea, COPD, and out-of-hospital care, accelerating our ResMed 2025 strategy. These digital health solutions provide efficiency and lower costs for providers and payers, as well as better quality-of-life and clinical outcomes for patients and physicians, and sustainable growth for all of our ResMed stakeholders."
The ResMed share price is up 35% since the start of the year.
